We are currently running a Ramadan In The Workplace: In Focus series of blog posts. Here we ask “How does Ramadan affect businesses?”
What does the fasting month of Ramadan mean to businesses? Does Ramadan really result in a lower productivity and performance?
All who are able-bodied enter the fasting period, resulting in shorter sleeping hours and eating in the early morning hours.
According to an economist studying the effects of Ramadan based in the Jordanian capital Amman, Samer Sunnuqrot comments; “The productivity of workers declines in the holy month by 30-50% as a result the shorter working hours and the change in behaviour.”
On the flip side, Ramadan proves to be a positive time for businesses, as consumers display a higher demand for goods and services during this period.
This echoes the trend which can be seen in the Christmas period or Chinese New Year, where there are traceable fluctuations in certain types of businesses, e.g. entertainment or retail. However, because Ramadan is set by the lunar calendar and changes each year, the effects on business vary in timing and impact from year to year, depending upon the season it falls.
Ramadan’s movement around the calendar may lead to complications for investors, if it falls or extends between two financial quarters.
At the end of Ramadan, people celebrate Eid-ul-Fitr, a three day festival which marks the end of the fast. For businesses that cater to Eid, Ramadan attracts huge profits.
During Eid, families come together to feast and exchange gifts. Café activity is also a tradition, as many head to cafés with family to socialise after Iftar.
Charities also tend to boost in profits during Ramadan, as traditionally mosques collect donations. Safiya Baharune from the Islamic Relief, London, comments that ‘Ramadan is the busiest time of the year.’ Ramadhan is also known as the month of selflessness and charity, with more than £100million estimated to be donated to charity by British Muslims during the month. A report in 2016 calculated Muslim charitable donations at an incredible £38 each second during Ramadhan.
Although many businesses will flourish during the holy month, Business-to-business companies must consider and respect the reduced working hours during this period.
In workplaces, many workers may be less productive, and many choose to focus on family or community during the holy month, therefore reducing the working population. Activity falls due to shorter work hours and lethargy.
Ramadan is an exciting time full of celebration, connecting with community, and is an opportunity for businesses to connect with staff and also clientele.
6 Ways How Diversity Helps Businesses
- Faster Problem Solving: employees with different experiences and views are naturally more able to problem solve together, sharing diverse solutions to the table. This also improves general group decision making within teams. It is better to have a team of people with different perspectives, backgrounds, and experiences, rather than a team of people who share similar backgrounds. A team of those with differences are able to articulate fresher, newer ideas.
- High Social Employee Engagement: When employees feel included, they are far more engaged within the working environment and internal teams. This is achieved simply!
- Reduced Employee Turnover: This is vital for retention of staff. Companies that are inclusive of different perspectives and characteristics allow all employees to feel valued and accepted. When employees feel this way, they are less likely to leave a company, and stay longer, and even gro
w loyalty towards the company. - Better Hiring Results: If a company is diverse, the company itself is seen to be a more desirable place to work. Workplace diversity attracts many, as it is seen as an important asset from a talent pool perspective. According to a survey conducted by Glassdoor, 67% of those seeking jobs comment that a diverse workforce is important when considering job offers.
- Better Reputation: Having a diversified team boosts a company’s brand and reputation. Companies who are seen to be diversified are also seen to be more human and socially responsible. The more diverse, the easier your company can be related to. This could potentially open doors to new customers, markets, and business partners.
If you require any more information regarding diversity and equality in the workplace, contact our employment team at 0113 284 5000, or alternatively contact our head of department Yunus Lunat directly on 0113 284 5036 or email yunus.lunat@isonharrison.co.uk.
Read our other Ramadan In The Workplace: In Focus blog posts:
